Roadshow Presentation

November 2007 Disclaimer. The information provided in this presentation is strictly confidential and is being furnished to you solely for your information. Neither this document nor any copy thereof may be reproduced, redistributed or passed on, in whole or in part, to any other person for any purpose. This presentation has been prepared exclusively by Acque Potabili S.p.A. (Acque Potabili or the Company) solely for the purpose of the presentation to institutional investors in connection with the proposed offering of ordinary shares of the Company (the Offer). It may not be used for any other purpose. This presentation is for your information only and does not constitute or form part of any offer to sell or issue, or invitation to purchase or subscribe for, or any solicitation of any offer to purchase or subscribe for, any securities of Acque Potabili, nor shall it or any part of it, nor the fact of its distribution form the basis of, or be relied on in connection with, any contract or investment decision. The information contained in this presentation has not been independently verified. Therefore, you should not act or rely on, or make any use of the content of, this presentation. This presentation does not purport to be comprehensive. The information, views and opinions expressed in this presentation are provided as of the date of this presentation and remain subject to verification, completion and change without notice. In particular, some of the information provided in this presentation is still in draft form and will only be finalized, if legally verifiable, at the time of publication of the final offering memorandum to be prepared and issued in due course by the Company in connection with the Offer. None of the Company, its shareholders or affiliates, nor Banca IMI S.p.A. (Banca IMI), as Global Coordinator of the Offer, nor any of their respective shareholders, directors, officers, employees, advisers or agents or any other person makes any representation or warranty, express or implied, as to the truth, fairness, accuracy, completeness or materiality of the information, views and opinions contained in this presentation or of any other information or material discussed or otherwise made available in connection with this presentation, nor accepts any liability or responsibility whatsoever for any loss howsoever arising from any use of the information, views and opinions provided in this presentation or otherwise arising in connection therewith. The content of this presentation is only intended for: (A) in , individuals or entities falling within the definition of professional investors provided for by Article 2(1)(e) lett. (i) and (ii), but excluding management companies authorised to manage individual portfolios on behalf of third parties (Società di gestione del risparmio or “SGR”) and fiduciary companies managing portfolio investments regulated by Article 60, paragraph 4 of Legislative Decree 415 of 23 July 1996, as amended and in accordance with applicable Italian laws a and regulations provided therein (società fiduciarie) (Professional Investors); (B) in the United Kingdom, qualified investors, within the meaning of Article 2(1)(e) of The Prospectus Directive (Directive 2003/71/EC) (Qualified Investors) (i) who have professional experience in matters of investments falling within Article 19(5) of The Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (the Order) or falling within Article 49(2)(a) to (d) of the Order and (ii) to whom it may otherwise be lawfully communicated (together, the Relevant Persons) and (C) in the European Economic Area, persons who are Qualified Investors. The distribution of the content of this presentation in other jurisdictions may be restricted by law. Persons into whose possession the content of this presentation come should inform themselves about and observe any such restrictions. Any failure to comply with the restrictions set forth above may constitute a violation of applicable securities laws. The shares of the Company under the Offer not been and will not be registered under the U.S. Securities Act of 1933 (the Securities Act) and may not be offered or sold in the U.S. except pursuant to an exemption from, or transaction not subject to, the registration requirements of the Securities Act. In the U.K. and the European Economic Area (other than Italy), the shares in the Global Offer will be available only to, and any invitation, offer or agreement to subscribe, purchase or otherwise acquire such shares will be engaged in only with, Relevant Persons and Qualified Investors, respectively. This presentation includes statistical data and projections. These data and projections are taken or derived in part from information published by industry sources. Neither the Company nor Banca IMI have independently verified these figures. You should not rely on this statistical data and projections cited in this document. The information in this presentation includes forward-looking, estimates of the market share and the present or future competitive position of the Company and of the Acque Potabili Group, and estimates regarding the market and the market segments of reference. Given the lack of certain and consistent data, such forward-looking statements and estimates are necessarily subjective and are made by the Company, unless otherwise specified, on the basis of market data or data prepared by the Company itself. Although such forward-looking statements and estimates are based on reasonable expectations, there can be no guarantee that such expectations shall be confirmed; the results of the Acque Potabili Group and the future development of the relevant sectors may be different from those projected in such forward-looking statements and estimates due to known or unknown risks, uncertainties and other factors. No representation or warranty, express or implied, is given as to the accuracy, completeness or correctness of the information, data and opinions contained herein. None of the Company, its shareholders or affiliates, nor Banca IMI, nor any of their respective shareholders, directors, officers, employees, advisers or agents or any other person, nor any member of the underwriting syndicate undertakes to update or revise the data or information contained herein after the presentation. By attending the presentation you agree to be bound by the foregoing restrictions.

2 Acque Potabili Capital Increase Agenda. 1. Offer Structure.

2. Acque Potabili.

3. Key Factors of the Business.

4. Strategy.

5. Focus ATO 1 .

6. Financial Highlights.

7. Closing Remarks.

8. Appendix.

3 Offer Structure Acque Potabili Capital Increase Offer Structure.

Issuer Acque Potabili S.p.A. Listing Italian Stock Exchange - Mercato Telematico Azionario

Structure of the Global Offer 10,250,000 primary shares

Italian retail offer minimum of 3,000,000 shares (of which 50% reserved to Tranches Shareholders of the Issuer with the exception of the Reference Shareholders), and an institutional offer reserved to Institutional Investors (Reg. S).

Greenshoe 1,521,000 shares (roughly 15% of the Global Offer)

Free-Float From 12.0% pre capital increase to 37.4% (roughly 40% post greenshoe)

Lock-up 180 days

Maximum Price EUR 4.8 per share, equivalent to a Global Offer of EUR 49.2M

Global Coordinator, Lead Manager and Banca IMI S.p.A. Bookrunner

Bookbuilding: 19 - 29 November 2007 Timetable Retail Offer: 19 - 29 November 2007 Announcement of offer price and settlement: 3 and 5 December 2007

5 After the capital increase, there will be a more adequate free-float, guaranteeing Acque Potabili stock a greater liquidity. Shareholder structure pre and post capital increase.

Pre Capital Increase (%) Post Global Offer (%)

Market 12.0% SMAT S.p.A. Market 31.3% 37.4% SM AT S .p.A. 44.0%

Iride Acqua Gas S.p.A. 44.0% Iride Acqua Gas S.p.A. Post Greenshoe (%) 31.3%

SMAT S.p.A. 30.0% Market 40.0%

Iride Acqua Gas S.p.A. 30.0%

6 Acque Potabili ATO 1 Palermo represents the recent history of the Acque Potabili Group and constitutes the main growth opportunity for the future. Key Milestones.

1852: 1953: 2001: 2005: Foundation of Control of Acquedotto Italgas conferred water Mandatory take-over on Acque Potabili di Savona acquired sector business unit 32.95% of capital and subsequent Private Placement

1941: 1965: 2005: 1H 2007: Italgas acquired Listing on the Milan Control of Acque Potabili Acque Potabili wins bid control of the Issuer Stock Exchange acquired by IRIDE and SMAT for 30-year management (equal stakes) through an concession of the SII in LBO the

8 Acque Potabili Siciliane (APS), which is consolidated proportionally, is the vehicle used to manage ATO 1 of Palermo. Structure of the Group.

• Acque Potabili is active in water distribution, sewage disposal and water treatment.

• The Group’s subsidiaries are Acquedotto di Savona, Acquedotto Monferrato and Acque Potabili Siciliane, 100% 100% 52% founded on 27 February 2007 to manage ATO 1 Palermo.

• The associated companies are ABM Next and Società Canavesana Acque.

• With Acque Potabili Siciliane, the number of customers served by the Group doubles (from 16%** 45%* approximately 260,000 to roughly 450,000).

• ATO 1 Palermo:

- 82 municipalities in the Province of Palermo (including the city of Palermo);

- 130M cubic meters of water production in full swing;

-Close to 1.2M of inhabitants (including the city of Palermo). * Associated company; ** Participated company.

9 Acque Potabili, an integrated operator in the water sector active mainly in North-West Italy. Acque Potabili at a Glance.

• Acque Potabili is a group that is active in the entire water cycle chain (water distribution, sewage disposal and water treatment services).

• 108 municipalities managed*.

• Approximately 260 thousand customers*.

• Roughly 823,400** inhabitants served.

• Distribution network of over 5,000 km*.

• EUR 61M of total revenues*.

• 88.2M cubic meters of water sold*.

• 298 employees.

* 2006 data before assignment of ATO 1 Palermo ** Acque Potabili calculations based on 2001 Istat data.

10 Key Factors of the Business Acque Potabili Capital Increase Key Factors of the Business.

Regulated service with upside from non High entrance barriers regulated activities

Strong integration Strong sector growth with reference potential shareholders

12 Acque Potabili Capital Increase Regulated service with upside from non regulated activities.

Water Services / S.I.I. – regulated activity Ancillary Services - non regulated activity • Remuneration of investments and costs coverage • Offer of high profitability services related to the thanks to the tariff adjustment mechanisms investment cycle (project knowledge, project established by the various competent authorities (ATO management); and CIPE); • Offer of specialized services (management of project • Visibility on cashflow backing company growth in financing, risk management and support services). respect of the financial and capital balance.

Key profitability drivers Key profitability drivers • Price cap method with coverage of operating costs and • High profitability thanks to the high technological amortization, and which guarantees a real pre-tax content. return on invested capital of 7% [T(n) = (C+A+R)(n-1) x • Strong growth potential, given that they are related to (1+Π+K)] (applied in the ATO 1 of Palermo and in a investments. few municipalities thanks to specific agreements). • CIPE method or, in the absence of an adjustment, definition of opportune agreements provided for by the existing conventions with the granting authorities.

13 Acque Potabili Capital Increase High Entrance Barriers

Exceptional know- how thanks to the Acque Potabili has been managing and creating infrastructures and technologies to long history of the improve water services since 1852. Group

Consolidated Acque Potabili serves a catchment area of approximately 820,000 inhabitants, experience in terms of operating structures corresponding to some 260,000 customers (2006 data) located in various areas of Italy.

Acque Potabili is present in 108 municipalities based on long-term concessions, and Long-term concessions through Acque Potabili Siciliane, it was assigned a 30-year water services management concession for the ATO 1 Palermo.

Ownership of most of Acque Potabili manages a drinking water distribution network of over 5,000 km and 440 the networks managed km of sewage networks.

The high entrance barriers that characterize the water sector and the specific skills of the Group constitute an important competitive edge for Acque Potabili.

14 Acque Potabili Capital Increase Strong integration with the activities of reference shareholders.

• Shareholders’ agreement signed by the two reference shareholders on 14 September 2007 in order to consolidate their investment in Acque Potabili.

• Relevant economies of scale by providing services 44%/30% 44%/30% and know how (SMAT and IRIDE Acqua e Gas are the respective managers of the ATO 3 and of the ATO Genoa).

• Significant support in the expansion of Acque Potabili in terms of participating in and winning bids 12,0%/40% for the management of new ATO.

Market

Acque Potabili is also a vehicle for the shareholders SMAT and IRIDE to expand in Italy and abroad.

15 Acque Potabili Capital Increase High sector growth prospects.

Civil water consumption (M cubic meters) • Still fragmented Italian market, with an obsolete water distribution network (37% of the population 4,553 4,483 served by the water distribution network does not have water on a constant basis). 4,350 4,310 4,268 4,226 • Service tariffs and costs substantially lower than in the main European cities.

Average annual cost per family (EUR / 200 c. meters per year) 1.000 900 800 700 Acqua Reflui Altro IVA 2007 2008 2009 2010 2015 2020 600 Source: Utilitatis, Blue Book 2007 and “Annual Report to Parliament on the State of 500 Water Services and Urban Waste Management” 2005. 400 300 200 100 -

e n s l t a a i o e ri n lo m o ll sk bs lin m u e lm to ch s a tr nk erp n r rich T o tri O in si rv w ei u er Ro th s rd S irchen o s bu Z B A ckh Bris te licantercelon el GenevaP nt ar Louvainu s A a H BrusselsA Gda s Warsaw to m B M s S Maa A lsenk e G Pari Source: SMAT Annual International Survey.

Constant consumption growth coupled with the lack of infrastructures can only be resolved with an investment recovery.

16 Strategy Acque Potabili Capital Increase Strategy: internal growth.

Agreement with the Municipal administrations conceding a CIPE tariff recovery plan Increase in revenues and/or transfer, where possible, of concessions from the CIPE system to the ATO system (North-West).

Step up operating efficiency by reducing the use of third party suppliers of water and Reduction in operating costs reducing network losses, workforce and geographic reorganization (disposal of non “performing” concessions in Calabria and Lazio).

Plant renovation program in order to improve the quality of service and enhance Improvement in the quality of service efficiency. The investments are remunerated through a tariff increase in both the area tariff regime and in the CIPE regime.

18 Acque Potabili Capital Increase Strategy: external growth.

Role of industrial partner when participating in pubic bids launched by the ATO Partnership Authorities and/or in providing services on behalf of new public operators.

The acquisition of 45% of ABM Next (company based in Bergamo and active in Acquisitions wholesale water sales) in 2006 is an example.

Winning the bid to manage the integrated water system in the ATO 1 of Palermo is Participation in bids an initial result.

The 2007-2011 business plan provides for approximately EUR 116M of investments, net of public grants and including development of ATO 1 Palermo.

19 Water distribution services are the main activity of the Acque Potabili Group (79.5% of revenues at 30 June 2007). Water Distribution Services.

Revenues (EUR M) Strategy 53.3 50.4 51.1 • Acque Potabili plans to present its role to the ATO Authority as the Operating Manager with the aim of 26.0 25.1 also integrating purification and sewage services, applying the ATO tariff (ex. ATO of Genoa, ATO Spezzino, ATO Astigiano and ATO Alessandrino). Similar agreements are going to be in place with

2004 2005 2006 1H '06 1H '07 the ATO of Turin.

Acque Potabili Group 2004 2005 2006 Positioning (Volumes invoiced 2006 – M c. meters)

Municipalities served 107 107 107 655 Upside ATO 1 Palermo Customers 254,185 257,307 260,267 Water run into network (Mcm) 124.5 121.1 122.3 283 280 Water invoiced (Mcm) 87.2 89.2 88.2 250 244 186 88 Water not invoiced (Mcm) 37.3 31.9 34.1 86 86 83 58 Network losses (%) 30% 26% 28% ACEA AQP* CAP Metrop. Hera SMAT Acque Enia ASM Iride**** Acegas MI** Mil.*** Potabili Brescia Aps Source: Financial statements and websites of the companies. * 2005 figure, volumes inclusive of volumes invoiced to ATO Basilicata; ** 2005 figure, drinking water produced, gross of network losses; ***average water volumes delivered per year; ****Volumes distributed, net of volumes invoiced by Gruppo Acque Potabili, consolidated proportionally by Iride

20 The Group’s know-how, coupled with its consolidated presence in waterworks services, offer growth potential, especially in the North-West area of the country. Sewage and Purification Services.

Sewage Water Treatment Revenues (EUR M) Revenues (EUR M)

2.1

1.7 1.7

1.3

0.7 0.7 0.6 0.5 0.5 0.3

2004 2005 2006 1H '06 1H '07 2004 2005 2006 1H '06 1H '07

Acque Potabili Group 2004 2005 2006 Acque Potabili Group 2004 2005 2006

Municipalities served 10 10 10 Municipalities served 13 12 12

Customers 36,895 36,895 37,583 Customers 37,266 36,496 37,001

Population 99,470 99,470 100,547 Population 106,531 103,731 103,731

Volumes transported (Mcm) 11.7 10.7 11.0 Volumes treated (Mcm) 12.0 11.1 11.5

21 ATO 1 Palermo will enable the size of the Acque Potabili Group to double. ATO 1 Palermo: a new phase of growth.

• Doubling of the customers served by the Group • 4,175 km of conveying and distribution networks. (from roughly 260,000 to roughly 450,000). • Sources: 91 wells, 133 springs and 4 diversions of • 82 municipalities in the Province of Palermo (including surface water. the city of Palermo). • 2,085 km of sewage network that serves some 1M • 100Mcm of water production in the first 5 years, 130 inhabitants. Mcm in full swing. • 65 purification plants that serve approximately 607,000 • Close to 1.2M inhabitants (including the city of Palermo inhabitants. in which management of the integrated water system assigned to AMAP is guaranteed until 2021).

22 Focus ATO 1 Palermo In the month of September, management of the first municipalities began. ATO 1 Palermo: growth milestones.

26 January 2007: Bid won for management of ATO 1 Palermo

27 February 2007: Acque Potabili Siciliane founded

14 June 2007: Management Agreement signed

26 September 2007: first municipalities acquired (26 x roughly 127,000 inhabitants)

24 APS Integrated Water Service Manager ATO 1 Palermo: Acque Potabili Siciliane and organization of the service.

• Acque Potabili Siciliane is the Integrated Service Manager for ATO 1 Palermo, and is obligated to ensure that the intervention program based on the ATO Plan is implemented. The concession has a 30- year duration.

• AMAP, which is controlled by the municipality of Palermo, is protected until 19 October 2021, and is the Operating Manager in the city of Palermo, active in managing dealings with customers, service provision, and ordinary and extraordinary maintenance of the existing infrastructures. Project Management Services 9% 52% 9% Design “Builders” “Design Engineers” Construction 28% 2%

Operating Management ATO Manager Investments

Municip. of Palermo 100% Operating Management Protected Manager S.I.I. ATO 1 Investments

25 Manager is recognized 50% of efficiency recoveries that beat targets. ATO 1 Palermo: the role of Acque Potabili Siciliane (regulated services).

• The territory managed by Acque Potabili Siciliane will be divided into Operating Areas. The acquisition began by taking over the EAS management (Phase One) and will continue per subsequent unifications based on a logic of homogenous growth over a period of close to 18 months. In occasion of the verification performed by the ATO Authority every three years in relation to the performance of operations, the Manager is recognized 50% of efficiency recoveries that exceed the targeted amounts.

• The investment plan proposed at the time of the bid is for EUR 853M in 30 years, of which EUR 290M in the first 5 years. The Plan benefits from EUR 145M of public grants in the first 5 years. The investments are guaranteed a real pre-tax return of 7%.

Investments

26 Acque Potabili will be well compensated for the design and coordination activities carried out in ATO 1 Palermo. ATO 1 Palermo: the role of Acque Potabili (non regulated services).

Based on the agreements with the shareholders of APS, Acque Potabili carries out the following non regulated activities:

• Coordination and project management activities remunerated by Acque Potabili Siciliane for an amount equal to 10% of the total project cost (75% Acque Potabili, 12.5% SMAT and 12.5% 52% Mediterranea delle Acque); Services related Services related to the investment to operating • Activities relative to “Project Awareness” (EUR cycle management 22M provided for in the ATO Plan, 33% under Acque Potabili) with the aim of ascertaining the state of the infrastructures before intervening;

• Implementation and management of project financing and risk management activities, ATO Management T = (C+A+R)(n-1) x (1+Π+K) remunerated by Acque Potabili Siciliane based on CAPEX [R = 7% x CE] OPEX the average market prices (Acque Potabili lender shareholder).

27 Financial Highlights Growth in the first 9 months thanks to a good revenue trend and to operating efficiencies. Results at 30 September 2007.

• Results for the first 9 months of 2007 were positively impacted by the good performance of non regulated activities (EUR +1.6M) and by operating efficiencies, in particular as regards costs for “purchases, services and other costs” (EUR -0.3M) and by the cost of labour (EUR -0.3M). The comparison is not affected by non recurrent income deriving from real estate disposals.

• The income statement, on the other hand, continued to suffer from the non-arrival of a CIPE provision, as a result of which the tariffs charged by the Group are based on the last resolution, no. 131 of 2002.

30 Sept. 2007 30 Sept. 2006 ∆ %

Total Revenues 47.9 46.0 4.2%

EBITDA 14.1 11.6 21.1%

EBIT 4.6 2.3 96.0%

Net Profit 0.1 0.0 n.m.

30 Sept. 2007 31 Dec. 2006 ∆ %

Net Financial Debt 67.1 67.0 -

29 Financial Highlights Income Statement Highlights

Total Revenues (EUR M) EBITDA (EUR M) 60.9 61.9 60.9 EBITDA % margin 15.9 15.4 15.1 14.1 46.0 47.9 11.6 29.4% 26.1% 24.9% 24.8% 25.3%

2004 2005 2006 9M '06 9M '07 2004 2005 2006 9M '06 9M '07 Total Operating Costs (EUR M) EBIT (EUR M)

45.0 46.5 45.8 4.4 4.6 4.0

11.8 12.6 11.2 33.8 34.3 3.0

9.2 8.9 2.3 18.8 17.7 17.8 9.5% 7.2% 25.1 24.9 6.6% 5.1% 14.4 16.1 16.8 4.8%

2004 2005 2006 9M '06 9M '07 2004 2005 2006 9M '06 9M '07 Raw Materials Other external costs Personnel EBIT % margin

30 Financial Highlights Balance Sheet Highlights.

Net Invested Capital (EUR M) • Starting from 2005, figures were impacted by the Fixed assets NWC Term. Indemn. and other funds merger of Acque Potabili and Nuova SAP. 164.0 158.1 164.6 137.3 27.2 21.1 28.5 • A real estate disposal program is underway which, 32.0 coupled with operating cashflow, will help finance the investments of the Acque Potabili Group. 153.8 154.5 153.7 113.6

(8.3) (17.0) (17.5) (17.5)

2004 2005 2006 1H '07 Net Financial Debt (EUR M) CAPEX (EUR M) 71.5 71.3 16.1 Investments 67.1 67.0 14.7 14.4 Divestments

5.7 5.8 21.0

0.2

2004 2005 2006 1H '07 9M '07 2004 2005 2006 1H '07 Note: 2005 impacted by the merger of Acque Potabili and Nuova SAP.

31 Closing Remarks Acque Potabili: a unique opportunity to take part in a growth story. Investment Highlights.

Regulated activities

Participation in bids or provision Entrance barriers of services

Non regulated Value Water sector activities creation potential

Territorial Management with rationalization solid experience

Integration with reference shareholders

33 Appendix Board of Directors and Board of Statutory Auditors.

Board of Directors.

Position First and last name Place of birth Date of birth Chairman Luigi Luzzati Genoa (GE) 29/09/1953 Deputy Chairman and managing director Paolo Romano (TO) 28/05/1943 Managing director Gianluigi Devoto Genoa (GE) 16/08/1950 Managing director Francesco Sava Udine (UD) 10/01/1972 Director Roberto Frascinelli Turin (TO) 21/11/1947 Director Giorgio Gilli Turin (TO) 30/05/1947 Director Armando Manzoni Genoa (GE) 13/03/1948 Director Renato Parena Turin (TO) 11/12/1945 Director * Alberto Eichholzer Saluzzo (CN) 07/02/1962

* Independent Director

Board of Statutory Auditors.

First and last name Position Place and date of birth Margherita Gardi Chairman Turin – 4/10/1946 Franco Giona Auditor Cassinelle (AL) – 15/7/1954 Maurizio Giorgi Auditor Turin– 6/3/1961 Renato Giorgi Substitute auditor Turin– 21/2/1963 Mario Zanoni Substitute auditor Lonato (BS) – 3/1/1947

35 List of the Distribution Concessions (1/3).

Municipality Province Region Users Expiration Company 1 Alice Bel Colle Al Piemonte 507 2023 Issuer 2 Ovada Al Piemonte 3.459 2022 Issuer 3 Ricaldone Al Piemonte 409 2023 Issuer 4 Sezzadio Al Piemonte 680 2024 Issuer 5 Strevi Al Piemonte 713 2015 Issuer 6 Visone Al Piemonte 704 2016 Issuer 7 Canelli At Piemonte 1.802 2021 Issuer 8 Cantarana At Piemonte 395 2010 Issuer 9 Ferrere At Piemonte 772 2010 Issuer 10 Montafia At Piemonte 501 2021 Acquedotto Monferrato 11 Nizza Monferrato At Piemonte 1.861 2023 Issuer 12 Villafranca At Piemonte 864 2012 Issuer 13 Ceresole D’Alba Cn Piemonte 439 2026 Issuer 14 Costigliole Saluzzo Cn Piemonte 1.124 2020 Issuer 15 Racconigi Cn Piemonte 1.692 2024 Issuer 16 Sanfrè’ Cn Piemonte 891 2028 Issuer 17 San Pietro Mosezzo No Piemonte 764 2023 Issuer 18 To Piemonte 2.433 [1] Issuer 19 To Piemonte 2.037 2011 Issuer 20 To Piemonte 993 2021 Issuer 21 To Piemonte 4.817 2013 Issuer 22 To Piemonte 850 2011 Acquedotto Monferrato 23 Cascinette To Piemonte 501 2009 Issuer 24 To Piemonte 876 2008 Issuer 25 Castagnole To Piemonte 590 2028 Issuer 26 To Piemonte 5.137 2007[2] Issuer 27 [3] To Piemonte 3.720 2022 Issuer 28 To Piemonte 680 2021 Issuer 29 To Piemonte 422 2022 Issuer 30 [4] To Piemonte 3.765 2022 Issuer 31 None To Piemonte 1.273 2021 Issuer 32 To Piemonte 2.802 2007[5] Issuer 33 To Piemonte 682 2007[6] Issuer 34 Riva Di Chieri To Piemonte 1.062 2019 Issuer 35 To Piemonte 1.314 2009 Issuer 36 San Sebastiano Po To Piemonte 783 2022 Acquedotto Monferrato 37 San Secondo To Piemonte 1.236 2022 Issuer 38 Sangano To Piemonte 997 2006 Issuer 39 To Piemonte 1.979 2009 Issuer 40 To Piemonte 1.416 2010 Issuer

36 List of the Distribution Concessions (2/3).

Municipality Province Region Users Expiration Company 41 Valdella Torre To Piemonte 1.638 2021 Issuer 42 To Piemonte 1.063 2008 Issuer 43 To Piemonte 524 2010 Issuer 44 To Piemonte 1.045 2030 Issuer 45 To Piemonte 955 2000[7] Issuer 46 Virle To Piemonte 392 2010 Issuer 47 To Piemonte 1.543 2004[8] Issuer 48 Lamporo Vc Piemonte 132 2024 Acquedotto Monferrato 49 Camogli Ge Liguria 4.779 2022 Issuer 50 Coreglia Ge Liguria 179 2023 Issuer 51 Rapallo Ge Liguria 9.495 2017 Issuer 52 Zoagli Ge Liguria 2.479 2010 Issuer 53 Camporosso Im Liguria 4.288 2039 Acquedotto Di Savona 54 Dolceacqua Im Liguria 1.725 2026 Acquedotto Di Savona 55 Isolabona Im Liguria 530 2027 Acquedotto Di Savona 56 Perinaldo Im Liguria 1.257 2032 Acquedotto Di Savona 57 San Biagio Della Cima Im Liguria 1.127 2008 Acquedotto Di Savona 58 Seborga Im Liguria 400 2035 Acquedotto Di Savona 59 Soldano Im Liguria 692 2032 Acquedotto Di Savona 60 Vallebona Im Liguria 1.092 2034 Acquedotto Di Savona 61 Vallecrosia Im Liguria 5.196 2024 Acquedotto Di Savona 62 Bolano Sp Liguria 3.947 2020 Issuer 63 Albissola Marina Sv Liguria 1.318 2028 Acquedotto Di Savona 64 Albissola Superiore Sv Liguria 2.130 2010 Acquedotto Di Savona 65 Altare Sv Liguria 988 2029 Acquedotto Di Savona 66 Bergeggi Sv Liguria 961 2029 Acquedotto Di Savona 67 Cairo Montenotte Sv Liguria 3.033 2027 Issuer 68 Celle Ligure Sv Liguria 3.851 2017 Acquedotto Di Savona 69 Cengio[9] Sv Liguria 2.267 2032 Acquedotto Di Savona 70 Noli Sv Liguria 2.861 2013 Acquedotto Di Savona 71 Quiliano Sv Liguria 1.894 2028 Acquedotto Di Savona 72 Savona Sv Liguria 17.532 2028 Acquedotto Di Savona 73 Spotorno Sv Liguria 2.024 2009 Acquedotto Di Savona 74 Vado ligure Sv Liguria 2.518 2028 Acquedotto Di Savona 75 Varazze Sv Liguria 7.171 2029 Acquedotto Di Savona 76 Capriolo Bs Lombardia 3.713 2021 Issuer 77 Padenghe sul Garda Bs Lombardia 3.405 2019 Issuer 78 Remedello Bs Lombardia 1.026 2027 Issuer 79 Rezzato Bs Lombardia 3.860 2021 Issuer 80 Arluno Mi Lombardia 2.810 2024 Issuer

37 List of the Distribution Concessions (3/3).

Municipality Province Region Users Expiration Company 81 Gazzuolo Mn Lombardia 482 2022 Issuer 82 Goito Mn Lombardia 1.382 2009 Issuer 83 Roverbella Mn Lombardia 2.453 2009 Issuer 84 Viadana Mn Lombardia 5.248 2022 Issuer 85 Cilavegna Pv Lombardia 1.884 2012 Issuer 86 St. Vincent Ao Valle d’Aosta 1.233 2008 Issuer 87 Verres Ao Valle d’Aosta 1.180 2012 Issuer 88 Adria Ro Veneto 9.916 2020 Issuer 89 Affi Vr Veneto 1.259 2020 Issuer 90 Torri del Benaco Vr Veneto 2.889 2021 Issuer 91 Cortemaggiore Pc Emilia 1.553 2021 Issuer 92 Maniago Pn Friuli 4.357 2008 Issuer 93 Montereale Valcellina Pn Friuli 2.544 2022 Issuer 94 Sabaudia Lt Lazio 5.283 2020 Issuer 95 Canterano Rm Lazio 357 2024 Issuer 96 Capranica Prenestina Rm Lazio 814 2021 Issuer 97 Gerano Rm Lazio 949 2020 Issuer 98 Olevano Romano Rm Lazio 2.543 2022 Issuer 99 Rocca Canterano Rm Lazio 338 2021 Issuer 100 Rocca di Papa Rm Lazio 6.329 2019 Issuer 101 Aiello Calabro Cs Calabria 823 2021 Issuer 102 Altilia Cs Calabria 431 2021 Issuer 103 Castrolibero Cs Calabria 2.631 2016 Issuer 104 Dipignano Cs Calabria 1.770 2022 Issuer 105 Luzzi Cs Calabria 2.827 2017 Issuer 106 Rende Cs Calabria 7.024 2016 Issuer 107 Falerna Cz Calabria 3.091 2021 Issuer 108 Crotone Kr Calabria 22.895 2023 Issuer

[1] Concession granted indefinitely. [2] Concession expiring 31 December 2007. [3] Concession granted through a bid and managed temporarily with Italgas until 13 February 2007; subsequently the concession was acquired directly by the Group. [4] Concession granted through a bid. [5] Concession granted for an initial period expired 2 October 2006. On the Prospectus Date, it was still managed de facto by the Group. [6] Concession granted for an initial period expired 4 December 2006. On the Prospectus Date, it was still managed de facto by the Group. [7] On the Prospectus Date, the concession, which had an initial expiration of January 2000 and was subsequently extended to 25 September 2005, was still managed de facto by the Group. [8] The concession had an initial expiration of 2004. Subsequently managed de facto by the Group, the plant was returned to the granting authority on 1 January 2007. [9] Concession granted through a bid.

38 List of the Sewage Disposal and Water Treatment Concessions.

Sewage Disposal.

Municipality Province Region Users Expiration 1 Altilia CS Calabria 307 2021 2 Bolano SP Liguria 3.338 2020 3 Crotone KR Calabria 22.225 2023 4 Luzzi CS Calabria 2.420 2017 5 Ovada AL Piemonte 2.406 2022[1] 6 Roverbella MN Lombardia 2.212 2009 7 Sanfrè CN Piemonte 796 2006 8 Torri del Benaco VR Veneto 2.200 2021 9 TO Piemonte 362 2012 10 Volvera TO Piemonte 1.317 2004[2]

[1] The concession had an initial expiration of 31 January 2007. On the Prospectus Date, it had been extended until 2022. [2] The concession had an initial expiration of 2004. Subsequently managed de facto by the Group, the plant was returned to the granting authority on 1 January 2007.

Water Treatment. Municipality Province Region Users Expiration 1 Altilia CS Calabria 308 2021 2 Bolano SP Liguria 3.384 2020 3 Crotone KR Calabria 21.934 2023 4 Lombriasco TO Piemonte 397 2022 5 Luzzi CS Calabria 2.420 2017 6 Ovada AL Piemonte 2.417 2022[1] 7 Roverbella MN Lombardia 2.216 2009 8 Sanfrè CN Piemonte 795 2006 9 Strevi AL Piemonte 526 2006 10 Villastellone TO Piemonte 933 2004[2] 11 Virle Piemonte TO Piemonte 362 2012 12 Volvera TO Piemonte 1.309 2004[3]

[1] The concession had an initial expiration of 31 January 2007. On the Prospectus Date, it had been extended until 2022. [2] On the Prospectus Date, it was still managed de facto by the Group. [3] The concession had an initial expiration of 2004. Subsequently managed de facto by the Group, it was returned to the granting authoriy on 1 January 2007.

39 List of the ATO 1 Palermo Municipalities (1/2).

Resident inhabitants Residents served by Residents served by Residents served by Municipality (ISTAT 2001) distribution service sewage service purification service 1 Alia 4.184 4.184 2.720 2.717 2 2.494 2.494 2.494 2.469 3 1.363 1.363 1.363 1.334 4 5.252 5.252 4.727 4.731 5 9.193 9.193 9.009 – 6 50.854 50.345 50.854 50.321 7 5.693 5.693 4.554 4.549 8 2.031 2.031 1.828 – 9 10.322 10.322 10.322 – 10 5.205 5.205 5.101 5.116 11 1.208 1.208 1.087 – 12 3.472 3.472 3.472 – 13 1.754 1.754 1.228 – 14 6.242 6.242 4.994 4.368 15 8.524 8.524 7.245 8.526 16 4.570 4.524 4.524 4.525 17 609 609 609 595 18 5.748 5.748 5.748 5.506 19 1.401 1.401 1.401 – 20 3.716 3.716 3.344 2.598 21 10.164 10.164 4.066 – 22 25.730 25.730 20.584 19.572 23 9.648 9.455 8.683 5.784 24 9.022 8.842 6.315 6.239 25 3.833 3.833 3.756 3.752 26 3.419 3.419 3.419 3.409 27 Cefalà Diana 992 992 893 893 28 Cefalù 13.789 13.375 10.342 9.642 29 5.377 5.377 5.323 – 30 3.302 3.302 2.642 2.634 31 3.986 3.986 3.787 – 32 10.253 10.253 5.127 – 33 4.253 4.253 4.040 4.041 34 1.985 1.985 1.787 1.981 35 11.393 11.393 10.937 9.625 36 9.418 9.230 8.476 8473,5 37 Gangi 7.614 7.462 7.614 7.602 38 2.105 2.105 2.105 39 1.900 1.805 1.615 1.607 40 Giuliana 2.305 2.305 2.075 2.073 41 1.147 1.147 1.147 1.146

40 List of the ATO 1 Palermo Municipalities (2/2).

Resident inhabitants Residents served by Residents served by Residents served by Municipality (ISTAT 2001) distribution service sewage service purification service 42 1.079 1.079 1.079 – 43 1.923 1.923 1.635 – 44 6.208 6.208 6.208 6.118 45 3.132 3.132 2.819 2.813 46 7.392 7.392 7.392 4.210 47 6.956 6.956 5.913 5.906 48 3.058 3.058 3.058 – 49 23.109 22.647 23.109 18.360 50 31.964 31.964 28.768 21.940 51 6.168 6.045 6.168 6.123 52 3.866 3.866 3.866 3.866 53 2.530 2.530 2.479 2.527 54 Palermo 686.722 686.722 549.378 228.424 55 31.003 31.003 27.903 27.544 56 3.688 3.688 3.614 2.027 57 3.311 3.311 3.311 8.612 58 6.227 6.227 6.227 5.282 59 4.169 4.169 4.169 4.142 60 3.120 3.058 3.058 3.060 61 5.711 5.711 5.711 5.711 62 1.793 1.793 1.255 – 63 2.842 2.842 2.785 2.786 64 5.016 5.016 4.514 – 65 8.349 8.266 7.932 – 66 2.166 2.101 2.101 2.097 67 865 865 848 733 68 9.535 9.249 6.675 – 69 Sciara 2.718 2.664 2.582 2.576 70 706 706 706 706 71 506 506 506 – 72 26.958 26.419 26.958 12.356 73 10.686 10.686 6.412 6.326 74 3.468 3.468 3.468 – 75 8.252 8.252 8.252 7.870 76 2.770 2.715 1.939 1.940 77 1.335 1.335 1.295 1.077 78 4.147 4.064 3.732 – 79 2.192 2.148 1.973 1.974 80 3.077 3.015 2.769 2.768 81 18.371 18.371 18.371 18.372 82 3.365 3.365 3.365 3.364

41 Income Statement.

% % % % % (000/Euro) 30.06.07 on 30.06.06 on 2006 on 2005 on 2004 on Revenues Revenues Revenues Revenues Revenues Water distribution revenues 25.056 79,5% 25.959 85,9% 51.138 84,0% 53.265 86,1% 50.442 82,8% Sewage services revenues 1.284 4,1% 538 1,8% 658 1,1% 578 0,9% 742 1,2% Water treatment services revenues 477 1,5% 342 1,1% 1.733 2,8% 1.744 2,8% 2.101 3,4% Revenues 26.817 85,1% 26.839 88,8% 53.529 87,9% 55.587 89,8% 53.285 87,4% Other income 4.706 14,9% 3.381 11,2% 7.363 12,1% 6.282 10,2% 7.647 12,6% Total revenues 31.523 100,0% 30.219 100,0% 60.892 100,0% 61.869 100,0% 60.932 100,0% Raw materials and changes in inventories (8.806) (25,7)% (7.920) (26,2)% (17.355) (28,5)% (16.817) (27,2)% (15.373) (25,2)% Services costs (7.490) (23,8)% (7.779) (25,7)% (16.252) (26,7)% (17.053) (27,6)% (17.944) (29,4)% Personnel costs (7.017) (22,3)% (7.114) (23,5)% (14.492) (23,8)% (15.226) (24,6)% (14.330) (23,5)% Rental and leasing and other operating costs (2.471) (7,8)% (2.172) (7,2)% (4.422) (7,3)% (2.790) (4,5)% (2.893) (4,7)% Capitalisation of internal costs 2.977 9,4% 2.378 7,9% 6.724 11,0% 5.392 8,7% 5.528 9,1% Total operating costs (22.086) (70,1)% (22.607) (74,8)% (45.796) (75,2)% (46.494) (75,1)% (45.012) (73,9)% Gross operating income 9.437 29,9% 7.612 25,2% 15.096 24,8% 15.375 24,9% 15.920 26,1% Depreciation and amortisation and impairment of non- (6.212) (19,7)% (6.097) (20,2)% (12.432) (20,4)% (12.114) (19,6)% (11.605) (19,0)% current assets Gain / (losses) on disposal of non-current assets - - (3) (0,0)% 1.332 2,2% (270) (0,4)% 86 0,1% Operating income 3.225 10,2% 1.511 5,0% 3.996 6,6% 2.991 4,8% 4.401 7,2% Financial income /(expenses), net (2.212) (7,0)% (1.461) (4,8)% (3.475) (5,7)% (1.996) (3,2)% (702) (1,2)% Net income before income tax expense 1.014 3,2% 51 0,2% 521 0,9% 995 1,6% 3.699 6,1% Income tax expense and deferred taxes (931) (3,0)% (10) 0,0% (1.547) (2,5)% (993) (1,6)% (2.128) (3,5)% Net income 83 0,3% 41 0,1% (1.026) (1,7)% 2 0,0% 1.571 2,6%

42 Balance Sheet – Assets.

ASSETS 30.06.07 31.12.06 31.12.05 31.12.04

Property, plant and equipment 126.368 126.263 126.050 110.924

Investment properties 7.639 7.720 9.780 2.138

Goodwill 17.470 17.470 17.470 -

Other intangible assets 486 580 428 433

Investments in associates 1.323 1.420 - -

Other equity investments 99 99 99 99 Non–current financial receivables and other non-current 304 951 - - financial assets Other non-current receivables and other non-current assets 10.212 10.230 10.191 10.248

Deferred tax assets - - 72 105

Total non-current assets 163.900 164.733 164.090 123.947

Inventories 819 785 675 631

Trade receivables 83.133 69.706 58.875 60.613

Other current receivables and other current assets 5.827 5.972 6.216 4.046

Other investments - - 1.051 - Current financial receivables and other current financial 741 - - - assets Cash and cash equivalents 9.749 15.597 10.062 6.027

Total current assets 100.269 92.060 76.879 71.317

Total assets 264.169 256.793 240.969 195.264

43 Balance Sheet – Equity and Liabilities.

EQUITY AND LIABILITIES 30.06.07 31.12.06 31.12.05 31.12.04

Share Capital 2.525 2.525 2.525 4.076

Reserves and retained earnings (excluding Treasury shares) 90.705 89.517 90.012 110.656

Net income/(loss) for the period 83 (1.026) 2 1.571

Shareholders' equity 93.313 91.016 92.539 116.303

Long –term borrowings 59.235 63.910 - -

Employee benefit liability 4.530 4.856 4.454 3.977

Deferred tax liabilities 10.272 9.838 9.744 1.686

Provisions for risks and charges 2.705 2.839 2.758 2.590

Other non-current payables and other non-current liabilities 5.693 5.702 5.517 5.457

Total non-current liabilities 82.434 87.145 22.473 13.710

Short –term borrowings 22.575 18.736 82.606 27.029

Trade payables 44.564 38.275 29.850 26.290

Other current payables and other current liabilities 20.253 20.663 13.142 11.308

Tax payables 1.030 958 359 624

Total current liabilities 88.423 78.632 125.957 65.251

Total liabilities 170.857 165.777 148.430 78.961

Total shareholders' equity and liabilities 264.169 256.793 240.969 195.264

44 Cash Flow Statement.

(000/Euro) 30.06.07 30.06.06 2006 2005 2004

Net cash provided by/ (used in) operating activities (1.544) (73) 16.013 19.242 (2.855)

Net cash used in investing activities (5.682) (6.357) (10.021) (17.128) (14.728)

Net cash provided by financing activities 1.379 7.058 (457) 1.921 15.558

Net increase /(decrease) in cash and cash equivalents (5.848) 774 5.535 4.035 (2.025)

Cash and cash equivalents at the beginning of the period 15.597 10.062 10.062 6.027 8.052

Cash and cash equivalents at the end of the period 9.749 10.836 15.597 10.062 6.027

45